> Well, you do have a choice, you could move to a lower tax jurisdiction. Different jurisdictions provide different trade-offs in terms of the tax burdens and services rendered. You can move to a jurisdiction that provides your preferred trade-off.
If you take that attitude then that invalidates the original argument - in that case, surely it's just as reasonable for the federal government to incentivise local mutual support cooperatives (which is what high-tax jurisdictions ultimately are) as it is to incentivise 503cs.
> Furthermore, there are lot of costs which you arguably can't avoid: food, medical, housing etc. Should you be able to deduct those off of your federal taxes as well since you can't really dispose of that income freely?
Yes, absoutely! The fact that you can't do that unless you structure yourself as a business is one of the great injustices that leads to the rich paying a much lower real tax rate than the poor.